Performance and Risks Management Study of Cobham plc 2312 Essay

Performance and Risks Management Study of Cobham plc 2312 - Essay Example Each of the four division offer range of products and service to the three different categories of end markets. Cobham’s US Defence/ security market, non-US Defence/ security Markets and commercial markets with 47%, 28% and 35% of the total market share as depicted from the image below (Cobham Plc. 2014): The consistent growth is acquired with its strategy of continuous improvement, transformation of business through Excellence in Delivery (EiD); and maintaining focus on the core market of second and third tiers of the defense, security market, commercial aerospace, land and marine market etc; and finally and divesting non-core businesses (Cobham Plc, 2015d; Cobham Plc, 2012). Global market share is presented below: The industry of the Cobham is highly complex in its characteristics. At one end, it is highly fragmented, facing high level of consolidation, strategic interdependency (ECORYS, 2009) and impact of loaming budgets (ATKearney, 2013). While on the other hand, the company defines opportunities and its respective position in the industry as follows: According to the annual report 2013, the company offers technologies that are technically diverse and are innovated to facilitate the diverse needs of the customers (Cobham Plc, 2012). Five years’ revenue trends is as follows: As graph above shows that the company has increased its sales except the CDS due to the slippage in the defense and security programs in USA (Cobham Plc, 2010). However, increasing margins from transformation under EiD program, acquisitions, and redefining scope and renaming of Aerospace and Security as Communications and Connectivity; from CAS; offset impact (Cobham Plc, 2013). Also anticipated decline in the defense sector by 2.5% while appreciation in the demand from the commercial sector by 25% in future years (Deloitte, 2015); has played its role. Cobham’s ranks